ViaWest talks $130 million of term loan debt at discount of 99

By Sara Rosenberg

New York, April 28 - ViaWest Inc. is talking its $110 million first-lien term loan and $20 million delayed-draw term loan at an original issue discount price of 99, according to a market source.

Price talk on the term loans and on the $10 million revolver is Libor plus 450 basis points with a 2% Libor floor.

The deal was launched on April 21, but at that time, the original issue discount was described as still to be determined.

RBC is the lead bank on the $140 million credit facility.

Proceeds will be used to help fund the buyout of the company by Oak Hill Capital Partners from Trinity Equity Investors, Goldman Sachs & Co. and Quilvest.

Other financing for the acquisition will come from a $60 million "silent" second-lien term loan that Oak Hill has already put in place with Barclays Structured Principal Investing Fund LP and Solar Capital Ltd., the source added.

The revolver and the delayed-draw term loan are expected to be undrawn at closing.

Completion of the transaction is expected in the second quarter, subject to regulatory approvals and customary closing conditions.

ViaWest is a Denver-based data center and managed services company.

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